Domino's Teachs E-commerce Companies about COD!

Yeah, so this is my first contribution to The Strategist of the Business Standard (10.9.2012)!
Cash on delivery has been identified as one of the culprits responsible for the troubles of e-commerce establishments.

But the experience of Domino's Pizza (Meal Delivery) shows why this line of argument is all wrong!
I have been reading the horror stories about how the cash on delivery model of payment touted by the e-commerce companies in India is the root of all their troubles and may ultimately lead to their ruin. It is almost funny how one of the most innovative ideas of our time is getting blamed for the things it is not really responsible for.

I would say cash on delivery is actually one of the best things that has happened in e-commerce, or for that any form of commerce. Here is why:

I just flipped through the 2011 balance sheet of the publicly listed company that operates Dominos India and was amazed to note some jaw dropping statistics.
• This company shipped about 3.7 crore pizzas in the year, equaling to 1 lakh pizzas sold per day.
• The pizzas sold for a total of Rs 600 crore, translating into an average price of Rs 162 per pizza.
• The business operated via 380 stores in 90 cities; that is, approximately four stores per city.
• Each store sold approximately 1 lakh pizzas a year or about 300 pizzas a day. That's about 25 pizzas an hour.
• The company recorded a net profit of Rs 90 crore. This equals to Rs 25 per pizza or a 15 per cent margin on the sale price.
I think this is awesome, considering that this business is entirely managed as a cash-on-delivery business. Also, if you review the size and scale of the operations they have, it resembles any gigantic e-commerce business.

So how can anyone blame cash on delivery as the culprit that ruined a business?
Actually, the pizza business in India teaches five important lessons to those who intend to execute the cash on delivery business model.
Continue reading


Source: Afaqs
http://www.afaqs.com/community/blog/234_5-lessons-that-Dominos-can-teach-e-commerce-companies-about-COD!

Domino's Pizza inaugurates 500th store in Delhi

Domino’s Pizza, the market leader in the organized pizza home delivery segment in India, has marked a new milestone with inaugurating its 500th store located at Rajinder Nagar in Delhi. The landmark store was inaugurated on August 30, 2012. After having reached the 500th store landmark, the company plans to continue with its aggressive growth path.

In the last few years Domino’s Pizza has not only aggressively expanded its footprint, but also has been focused on winning more customer hearts across India through its tasty Pizza offerings, unmatched food delivery promise and warm customer service approach. Domino’s India operations are the fastest growing operations in the Domino’s global system.

Besides, the company also continues to be market leaders in the organized pizza market with a 55% market share as per Euro monitor 2012 report and 70%+ share in the Pizza home delivery segment in India.

Jubilant FoodWorks is India’s largest and fastest growing food service company. The company and its subsidiary operates Domino’s Pizza brand with exclusive rights for India, Nepal, Bangladesh and Sri Lanka.

DISCLAIMER: Accord Fintech provides the Content on “AS IS” basis without any express or implied warranties. Accord Fintech does not warrant the accuracy, timeliness, completeness, adequacy, merchantability, or fitness for a particular purpose of the Content, and Accord Fintech shall not be liable to Licensee or to any third party with respect to any actual or alleged inaccuracy, untimeliness, incompleteness, inadequacy, unmerchantbailty or unfitness.